Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Nobilis Health Corp.
Oklahoma City, OK (October 26, 2015) – On October 21, 2015, a securities class action lawsuit was filed in the United States District Court for the Southern District of Texas against Nobilis Health Corp. (NYSE MKT: HLTH). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is April 2, 2015 through October 8, 2015. More specifically, this litigation was filed because defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company claimed success rates for its AccuraScope procedure which lacked recognition from any university, medical body, or insurance company; (ii) the Company had overstated its 2014 revenues by as much as $36 million; (iii) consequently, the Company had misrepresented its 2014 revenue growth rate as 161%, when it was actually only 44%; and (iv) as a result of the foregoing, Nobilis’s public statements were materially false and misleading at all relevant times.
On October 9, 2015, Seeking Alpha published an article entitled “Nobilis: About To Fall From Nobility, Part I, 65%+ Downside” (the “Seeking Alpha Report”). The Seeking Alpha Report described, among other issues, the AccuraScope procedure’s “questionable insurability, unsubstantiated success rates, [and] lack of recognition from” universities, medical bodies, or insurance companies. In addition, the Seeking Alpha Report noted significant accounting red flags, and reported that the Company had overstated its 2014 revenues by as much as $36 million. As a result of this news, shares of Nobilis fell $1.42 to close at $3.82 on October 9, 2015.
Plaintiff seeks to recover damages on behalf of all Nobilis Health Corp. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, December 21, 2015 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to email@example.com, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Mon, October 26, 2015
by Robin Hester filed under